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Sunday, December 12, 2010

El Gordo (The Big One)


El Gordo (The Big One)

If it’s almost Christmas that means that it’s time, once again for El Gordo. This is that wonderful Spanish Lottery the whole world knows about, and it seems plays. The Spanish lotteries are the most wonderful in the world as they are unabashedly socialist. Previously, I didn’t understand the concept, but I did notice that the lotteries are played regularly by a great number of people. There are a number of lotteries that are played weekly, most of them I do not even pretend to understand.

I shall content myself for the moment with El Gordo, which takes place over Christmas.

Firstly, unlike most lotteries this does not pay prizes on a “single winner takes all” basis. This is designed so that as many people as possible can share in the winnings, consequently the socialist angle.

The cost to buy a full single number is 200 euros. However, you would not hold that number exclusively, and unless you knew something the rest of us didn’t, you probably wouldn’t spend that much on one number, when the strategy is usually to collect as many different numbers as possible. So, it is possible to buy only one tenth of a number (un décimo) for twenty euros.

To add further participation, on behalf of The Lottery Commission, charity groups can sell papeletas (little papers, or tickets) for small amounts of money that gives them a commission to help fund their own projects, while at the same time buying a part of a décimo for about 5 euros.

The prizes go from first, at 3,000,000 euros; second at 1,000,000 euros, third at 500,000; fourth prize has two numbers called for 200,000 euros; and fifth prize at 50,000 euros has eight numbers called. There are also 1774 consolation prize numbers of 1,000 euros. These numbers are the formula on which actual winnings are based.

The catch is that if you hold a décimo and your number won on three million euros, that doesn’t mean that you win that amount, nor does it mean that the amount of 3,000,000 euros is all that is paid out. You will win one tenth of three million for every décimo you hold. That’s 300,000 euros for every ticket that is held.

I feared that the more people held my number the less there would be for me to share, but no, my share is fixed regardless of how many others there are.

My syndicate expects to hold 600 décimos this year, and that would bring in 180,000,000 euros to us, that’s right, that’s millions if we win on the first prize, to be divided among each ticket, which in our case would be 3,000 tickets at 60,000 euros per ticket. Many thousands of people would benefit, in fact so many people benefit annually in total from El Gordo I doubt if the number is known. What is known is that El Gordo pays out about 70% of what it takes in, and should this year be like last year, more than 2.5 billion euros will be paid. The remainder goes into the government’s account as a form of passive tax.

It’s a very small wonder that about 98% of all people in Spain will buy into El Gordo, and only God, in His Wisdom can know how many people from the rest of the world will be hoping upon hope that this is the year their number is called.

D-Day, being Draw Day is the morning of December 22nd. Have you ever seen an entire country hold its breath?

(It actually did happen this year here in Spain and in Holland during the football World Cup.)

Now, all that we need to do is win. Wish me good luck! I certainly wish you the best of luck!

Copyright © 2010 Eugene Carmichael